Company Registration No. 05653527 (England and Wales)
PETS' KITCHEN LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
PAGES FOR FILING WITH REGISTRAR
PETS' KITCHEN LIMITED
BALANCE SHEET
AS AT
31 JULY 2019
31 July 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
3
4,515
5,098
Tangible assets
4
433,580
536,796
Current assets
Stocks
562,156
513,220
Debtors
5
606,682
487,269
Cash at bank and in hand
58,074
165,825
1,226,912
1,166,314
Creditors: amounts falling due within one year
6
(1,203,894)
(1,161,150)
Net current assets
23,018
5,164
Total assets less current liabilities
461,113
547,058
Creditors: amounts falling due after more than one year
7
(285,886)
(329,510)
Net assets
175,227
217,548
Capital and reserves
Called up share capital
21,883
21,864
Share premium account
2,220,930
2,219,416
Profit and loss reserves
(2,067,586)
(2,023,732)
Total equity
175,227
217,548
PETS' KITCHEN LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JULY 2019
31 July 2019
- 2 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 July 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 21 May 2020 and are signed on its behalf by:
R J Penston
J A R Silvester
Director
Director
Company Registration No. 05653527
PETS' KITCHEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
- 3 -
1
Accounting policies
Company information
Pets' Kitchen Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit 3 Callenders, Paddington Drive, Swindon, SN5 SYW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT
.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents and trademarks
over estimated useful life of 10 years
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Improvements to property
over the remaining term of the lease
Plant and machinery
50% straight line
Fixtures, fittings & equipment
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
PETS' KITCHEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 4 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, bank overdrafts
and borrowings under an invoice finance facility
. Bank overdrafts
and borrowings under an invoice finance facility
are shown in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
PETS' KITCHEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 5 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 38 (2018 - 38).
PETS' KITCHEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 6 -
3
Intangible fixed assets
Other
£
Cost
At 1 August 2018 and 31 July 2019
8,548
Amortisation and impairment
At 1 August 2018
3,450
Amortisation charged for the year
583
At 31 July 2019
4,033
Carrying amount
At 31 July 2019
4,515
At 31 July 2018
5,098
4
Tangible fixed assets
Land and buildings
IT, Equipment and Plant & Machinery
Total
£
£
£
Cost
At 1 August 2018
414,264
645,586
1,059,850
Additions
5,962
8,236
14,198
Disposals
-
(2,000)
(2,000)
At 31 July 2019
420,226
651,822
1,072,048
Depreciation and impairment
At 1 August 2018
110,596
412,458
523,054
Depreciation charged in the year
22,949
94,465
117,414
Eliminated in respect of disposals
-
(2,000)
(2,000)
At 31 July 2019
133,545
504,923
638,468
Carrying amount
At 31 July 2019
286,681
146,899
433,580
At 31 July 2018
303,668
233,128
536,796
PETS' KITCHEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 7 -
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
500,907
340,298
Other debtors
105,775
146,971
606,682
487,269
6
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and loan notes
26,000
6,000
Invoice financing
49,351
144,380
Trade creditors
526,892
531,760
Taxation and social security
106,406
92,215
Other creditors
495,245
386,795
1,203,894
1,161,150
7
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and loan notes
251,950
278,450
Other creditors
33,936
51,060
285,886
329,510
8
Loans and overdrafts
2019
2018
£
£
Bank loans and loan notes
277,950
284,450
Payable within one year
26,000
26,000
Payable after one year
251,950
278,450
There are a number of fixed and floating charges registered at Companies House over various assets of the company.
PETS' KITCHEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 8 -
9
Share-based payment transactions
Number of share options
Weighted average exercise price
2019
2018
2019
2018
Number
Number
£
£
Outstanding at 1 August 2018
828,406
866,276
0.11
0.11
Granted
324,840
-
0.16
-
Exercised
(9,584)
-
0.16
-
Expired
(32,916)
(37,870)
0.16
0.11
Outstanding at 31 July 2019
1,110,746
828,406
The company operates a share scheme for the purpose of granting EMI options and unapproved options to incentivise and aid retention of key employees.
The fair value of these options at the year end has been calculated using the Black Scholes model. No charge has been recognised in these financial statements, as it is not considered to be material.
Post year end the following options were exercised:
10
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2019
2018
£
£
Within one year
72,000
61,000
Between two and five years
131,836
172,375
203,836
233,375
11
Related party transactions
The company entered into a loan agreement for £270,000 on 5 May 2017, repayable after 3 years with interest payable at 7.5% per annum.
During the year a deed of variation
was
agreed
for £250,000 of the loan,
extending the repayment
of the loan
by one year.
Included in this loan were amounts totalling £150,000 from directors or their close family members. The loan remains outstanding as at the year end.
Warrants attaching to the shareholder loan of £270,000 entitle the lenders to subscribe for shares in the company at a price of £0.375 during the term of the loan.